Sunday, November 27, 2011
Year end tax deduction
If you are thinking of donating to charity between now and year-end, consider giving away stock that you've owned for more than a year and that is worth more than you paid for it. That way, you can avoid capital-gains tax on the increased value—and you usually can deduct the stock's fair market value at the time you make your gift.
This can be especially smart if you have no idea what you originally paid for a stock years ago since you don't need that information to take advantage of this provision.
Don't donate stock that has decreased in value. Instead, sell it to nail down a tax loss and donate the proceeds.
William Wombacher, your Central Illinois Certified Elder Law Attorney (CELA) and Social Security Disability Specialist. I'll help you! www..wombacherlaw.com
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